Chapter 7

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6.1 Copyright © 2014 Pearson Educationpublishing as Prentice Hall
Telecommunications, the Internet, and
Wireless Technology
Chapter 7
Video cases:
Case 1: Telepresence Moves Out of the Boardrooom and Into the Field
Case 2: Unified Communications Systems: Virtual Collaboration with Lotus
Sametime
7.2 Copyright © 2014 Pearson Education
Management Information Systems, Global Edition
Chapter 7: Telecommunications, the Internet, and Wireless Technology
• Identify the principal components of telecommunications
networks and key networking technologies.
• Identify the different types of networks.
• Describe how the Internet and Internet technology work and
how they support communication and e‐business.
• Describe the principal technologies and standards for
wireless networking, communication, and Internet access.
• Describe radio frequency identification and wireless sensor
networks and identify why these are valuable business
technologies.
LEARNING OBJECTIVES

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• Problem: Inefficient manual processes; large
production environment
• Solutions: Track components in real time, optimize
transportation, and expedite communication
– Wi‐Fi networks
– RFID technologies
– Mobile handhelds
– Material inventory tracking software
• Demonstrates use of technology in production and
supply chain to increase efficiency and lower costs
RFID and Wireless Technology Speed Up Production at Continental Tires
• Networking and Communication Trends
– Convergence:
• Telephone networks and computer networks
converging into single digital network using Internet
standards
– Broadband:
• More than 68% U.S. Internet users have broadband
access
– Broadband wireless:
• Voice, data communication are increasingly taking
place over broadband wireless platforms
Telecommunications and Networking in Today’s Business World

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• Computer network
– Two or more connected computers
– Major components in simple network
• Client and server computers
• Network interfaces (NICs)
• Connection medium
• Network operating system
• Hubs, switches, routers
– Software‐defined networking (SDN)
• Functions of switches and routers managed by central program
Illustrated here is a very simple computer network, consisting of computers, a network operating system
residing on a dedicated server computer, cabling (wiring) connecting the devices, network interface cards
(NIC), switches, and a router.
Figure 7-1
Components of a Simple Computer Network

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• Networks in large companies
– Hundreds of local area networks (LANs) linked to
firmwide corporate network
– Various powerful servers
• Web site
• Corporate intranet, extranet
• Backend systems
– Mobile wireless LANs (Wi‐Fi networks)
– Videoconferencing system
– Telephone network
– Wireless cell phones
Today’s corporate network
infrastructure is a collection of
many different networks from
the public switched telephone
network, to the Internet, to
corporate local area networks
linking workgroups,
departments, or office floors.
Figure 7-2
Corporate Network Infrastructure

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• Key digital networking technologies
– Client/server computing
• Distributed computing model
• Clients linked through network controlled by network
server computer
• Server sets rules of communication for network and
provides every client with an address so others can find
it on the network
• Has largely replaced centralized mainframe computing
• The Internet: largest implementation of client/server
computing
• Key digital networking technologies (cont.)
– Packet switching
• Method of slicing digital messages into parcels
(packets), sending packets along different
communication paths as they become available, and
then reassembling packets at destination
• Previous circuit‐switched networks required assembly
of complete point‐to‐point circuit
• Packet switching more efficient use of network’s
communications capacity

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Data are grouped into small packets, which are transmitted independently over various communications
channels and reassembled at their final destination.
Figure 7-3
Packet‐Switched Networks and Packet Communications
• Key digital networking technologies (cont.)
– TCP/IP and connectivity
• Protocols: rules that govern transmission of information
between two points
• Transmission Control Protocol/Internet Protocol (TCP/IP)
– Common worldwide standard that is basis for Internet
• Department of Defense reference model for TCP/IP
– Four layers
» Application layer
» Transport layer
» Internet layer
» Network interface layer

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This figure illustrates the four
layers of the TCP/IP reference
model for communications.
Figure 7-4
The Transmission Control Protocol/Internet Protocol (TCP/IP) Reference Model
• Signals: Digital versus analog
– Modem: translates digital signals into analog form
(and vica versa)
• Types of networks
– Local‐area networks (LANs)
• Ethernet
• Client/server vs. peer‐to‐peer
– Wide‐area networks (WANs)
– Metropolitan‐area networks (MANs)
– Campus area networks (CANs)
Communications Networks

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A modem is a device that translates digital signals into analog form (and vice versa) so that computers can
transmit data over analog networks such as telephone and cable networks.
Figure 7-5
Functions of the Modem
• Physical transmission media
– Twisted pair wire (CAT5)
– Coaxial cable
– Fiber optics cable
– Wireless transmission media and devices
• Satellites
• Cellular systems
• Transmission speed
– Bits per second (bps)
– Hertz
– Bandwidth
Communications Networks

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• The Internet
– World’s most extensive network
– Internet service providers (ISPs)
• Provide connections
• Types of Internet connections
– Dial‐up: 56.6 Kbps
– Digital subscriber line (DSL/FIOS): 385 Kbps–40
Mbps
– Cable Internet connections: 1–50 Mbps
– Satellite
– T1/T3 lines: 1.54–45 Mbps
The Global Internet
• Internet addressing and architecture
– IP addresses
• The Domain name system (DNS)
– Converts IP addresses to domain names
– Hierarchical structure
– Top‐level domains
• Internet architecture and governance
– No formal management: IAB, ICANN, W3C
– The future Internet: IPv6 and Internet2
The Global Internet

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The Domain Name System is a
hierarchical system with a root
domain, top-level domains,
second-level domains, and host
computers at the third level.
Figure 7-6
The Domain Name System
The Internet backbone connects
to regional networks, which in
turn provide access to Internet
service providers, large firms,
and government institutions.
Network access points (NAPs)
and metropolitan area
exchanges (MAEs) are hubs
where the backbone intersects
regional and local networks
and where backbone owners
connect with one another.
Figure 7-7
Internet Network Architecture

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Read the Interactive Session and discuss the following questions
Interactive Session: Organizations
– What is network neutrality? Why has the Internet
operated under net neutrality up to this point in time?
– Who’s in favor of network neutrality? Who’s opposed?
Why?
– What would be the impacts on individual users,
businesses, and government if Internet providers switched
to a tiered service model?
– Are you in favor of legislation enforcing network
neutrality? Why or why not?
The Battle over Net Neutrality
• Internet services
– E‐mail
– Chatting and instant messaging
– Electronic discussion groups / newsgroups
– Telnet
– File Transfer Protocol (FTP)
– World Wide Web
The Global Internet

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Client computers running Web browser and other software can access an array of services on servers over the
Internet. These services may all run on a single server or on multiple specialized servers.
Figure 7-8
Client/Server Computing on the Internet
– Voice over IP (VoIP)
• Digital voice communication using IP, packet switching
• Providers
– Cable providers
– Google, Skype
– Unified communications
• Communications systems that integrate voice, data,
e‐mail, conferencing
– Virtual private network (VPN)
• Secure, encrypted, private network run over Internet
– PPTP
– Tunneling
The Global Internet

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A VoIP phone call digitizes and breaks up a voice message into data packets that may travel along different
routes before being reassembled at the final destination. A processor nearest the call’s destination, called a
gateway, arranges the packets in the proper order and directs them to the telephone number of the receiver or
the IP address of the receiving computer.
Figure 7-9
How Voice over IP Works
This VPN is a private network of computers linked using a secure “tunnel” connection over the Internet. It
protects data transmitted over the public Internet by encoding the data and “wrapping” them within the Internet
Protocol (IP). By adding a wrapper around a network message to hide its content, organizations can create a
private connection that travels through the public Internet.
Figure 7-10
A Virtual Private Network Using the Internet

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Read the Interactive Session and discuss the following questions
Interactive Session: Management
– Should managers monitor employee e‐mail and
Internet usage? Why or why not?
– Describe an effective e‐mail and Web use policy
for a company.
– Should managers inform employees that their
Web behavior is being monitored? Or should
managers monitor secretly? Why or why not?
Monitoring Employees on Networks—Unethical or Good Business?
• The Web
– Hypertext Markup Language (HTML)
– Hypertext Transfer Protocol (HTTP):
• Communications standard used for transferring Web
pages
– Uniform resource locators (URLs):
• Addresses of Web pages
– http://www.megacorp.com/content/features/082602.html
– Web servers
– Software for locating and managing Web pages
The Global Internet

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• Search engines
– Started as simpler programs using keyword indexes
– Google improved indexing and created page ranking
system
• Mobile search: 20% of all searches in 2012
• Search engine marketing
– Major source of Internet advertising revenue
• Search engine optimization (SEO)
– Adjusting Web site and traffic to improve rankings in
search engine results
The Global Internet
Google is the most popular
search engine on the Web,
handling 84 percent of all
Web searches.
Figure 7-11
Top U.S. Web Search Engines

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• Social search
– Google +1, Facebook Like
• Semantic search
– Anticipating what users are looking for rather than
simply returning millions of links
• Intelligent agent shopping bots
– Use intelligent agent software for searching Internet
for shopping information
The Global Internet
The Google search engine is continuously crawling the Web, indexing the content of each page, calculating its
popularity, and storing the pages so that it can respond quickly to user requests to see a page. The entire
process takes about one-half second.
Figure 7-12
How Google Works

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• Web 2.0
– Second‐generation services
– Enabling collaboration, sharing information, and
creating new services online
– Features
• Interactivity
• Real‐time user control
• Social participation (sharing)
• User‐generated content
The Global Internet
– Web 2.0 services and tools
• Blogs: chronological, informal Web sites created by
individuals
– RSS (Really Simple Syndication): syndicates Web content so
aggregator software can pull content for use in another
setting or viewing later
– Blogosphere
– Microblogging
• Wikis: collaborative Web sites where visitors can add,
delete, or modify content on the site
• Social networking sites: enable users to build
communities of friends and share information
The Global Internet

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• Web 3.0: The “Semantic Web”
– A collaborative effort led by W3C to add layer of
meaning to the existing Web
– Goal is to reduce human effort in searching for and
processing information
– Making Web more “intelligent” and intuitive
– Increased communication and synchronization with
computing devices, communities
– “Web of things”
– Increased cloud computing, mobile computing
The Global Internet
• Cellular systems
– Competing standards
• CDMA: United States only
• GSM: Rest of world, AT&T, T‐Mobile
– Third‐generation (3G) networks
• 144 Kbps
• Suitable for e‐mail access, Web browsing
– Fourth‐generation (4G) networks
• Up to 100 Mbps
• Suitable for Internet video
The Wireless Revolution

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• Wireless computer networks and Internet
access
– Bluetooth (802.15)
• Links up to 8 devices in 10‐m area using low‐power, radio‐based
communication
• Useful for personal networking (PANs)
– Wi‐Fi (802.11)
• Set of standards: 802.11
• Used for wireless LAN and wireless Internet access
• Use access points: device with radio receiver/transmitter for
connecting wireless devices to a wired LAN
Bluetooth enables a variety of
devices, including cell phones,
PDAs, wireless keyboards and
mice, PCs, and printers, to
interact wirelessly with each
other within a small 30-foot
(10-meter) area. In addition to
the links shown, Bluetooth can
be used to network similar
devices to send data from one
PC to another, for example.
Figure 6-15
A Bluetooth Network (PAN)

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Mobile laptop computers
equipped with wireless network
interface cards link to the wired
LAN by communicating with
the access point. The access
point uses radio waves to
transmit network signals from
the wired network to the client
adapters, which convert them
into data that the mobile device
can understand. The client
adapter then transmits the data
from the mobile device back to
the access point, which forward
the data to the wired network.
Figure 7-14
An 802.11 Wireless LAN
• Wireless computer networks and Internet
access
– Wi‐Fi (cont.)
• Hotspots: one or more access points in public place to
provide maximum wireless coverage for a specific area
• Weak security features
– WiMax (802.16)
• Wireless access range of 31 miles
• Require WiMax antennas

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• Radio frequency identification (RFID)
– RFID tags:
• Tiny tags with embedded microchips contain data about an item
and location
• Transmit radio signals over short distances to RFID readers
– RFID readers:
• Send data over network to computer for processing
– Active RFID:
• Tags have batteries
• Data can be rewritten
• Range is hundreds of feet
• RFID (cont.)
– Passive RFID:
• Range is shorter
• Smaller, less expensive
• Powered by radio frequency energy
– Common uses:
• Automated toll‐collection
• Tracking goods in a supply chain
– Requires companies to have special hardware and
software
– Reduction in cost of tags making RFID viable for
many firms

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RFID uses low-powered radio transmitters to read data stored in a tag at distances ranging from 1 inch to 100
feet. The reader captures the data from the tag and sends them over a network to a host computer for
processing.
Figure 7-15
How RFID Works
• Wireless sensor networks (WSNs)
– Networks of hundreds or thousands of interconnected
wireless devices embedded into physical environment to
provide measurements of many points over large spaces
– Used to monitor building security, detect hazardous
substances in air, monitor environmental changes, traffic,
or military activity
– Devices have built‐in processing, storage, and radio
frequency sensors and antennas
– Require low‐power, long‐lasting batteries and ability to
endure in the field without maintenance

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The small circles represent lower-level nodes and the larger circles represent high-end
nodes. Lower-level nodes forward data to each other or to higher-level nodes, which
transmit data more rapidly and speed up network performance.
Figure 7-16
A Wireless Sensor Network

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